Portland staff report mismatch between opioid fund goals and applicants; committee to explore scaled day‑space and other options

Portland staff updated the Health and Human Services and Public Safety Committee on July 8 about the city’s use of opioid settlement funds and outlined concerns about how best to spend a council allocation of those funds.

Maggie McLaughlin, director of Health and Human Services, told the committee the city joined the national opioid litigation and by September had received about $1,380,000 in settlement payments, with future payments averaging roughly $235,000 per year through 2039. In October the council directed $1,300,000 of the settlement funds toward three priorities: a syringe redemption program, on‑peninsula methadone treatment and a day space. McLaughlin said the syringe redemption program began in January and is performing ‘‘very well.’’ Staff estimate continuing syringe redemption would cost less than $75,000 annually.

Staff issued a request for applications (RFA) for on‑peninsula methadone treatment and a day space. McLaughlin said applicants collectively requested about $4,500,000, far more than the $1,300,000 available. Scores on the methadone applications ranged from 56 (highest) to 41 (lowest) on a 0–100 scale; three methadone applicants lacked a brick‑and‑mortar location, and one applicant had an executed lease and appeared likely to proceed without city funds. The single day‑space applicant received a score of 53.

McLaughlin told the committee the day‑space applicant proposed using a Portland Housing Authority‑owned site at 14 Baxter Boulevard. Staff said that property is held under a HUD declaration of trust and any change of use would require HUD approval; the site would be available for at most three years. McLaughlin said the applicant asked for the full $1,300,000 for two years (about $650,000 per year), and staff concluded that amount would be insufficient to support the staffing levels and neighborhood management needed to meet the RFA’s priorities. Staff estimated a realistic operational budget could be closer to $2,500,000 for the model proposed.

Given federal and state funding shifts and uncertainties (including changes affecting Medicaid and housing assistance), staff presented options: continue the syringe redemption program; reserve funds to preserve core mental‑health and recovery services while monitoring state actions; explore alternative, lower‑scale day‑space models or different locations; or reallocate funds to support a warming shelter by helping an operator secure an appropriate facility. McLaughlin said the RFA specified a preference for applicants who could identify existing, sustainable space and leverage additional funding.

Councilors expressed frustration that earlier community outreach and the RFA produced applications that staff judged to be a poor match for the committee’s stated goals. Councilor April Fournier said the RFA results suggested a mismatch between what the city sought and what applicants proposed and urged staff to pursue negotiations with the applicant and partners such as the Portland Housing Authority and Maine Housing to try to make the project feasible. Several councilors voiced support for a smaller, well‑run program that serves fewer individuals reliably rather than a larger program that could not be sustained.

Committee members asked staff to return with alternative, scaled options and to pursue stakeholder discussions (including county partners and health providers). Staff said they would explore revised models and partnerships and bring options back to the committee in the fall.